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As Fed jacks up rates, bond market warns of potential for economic weakness

The Fed sent a hawkish message to markets— more rate hikes are coming and a bit faster than expected, triggering an immediate negative reaction in bonds.
The Federal Reserve raised interest rates by a quarter point and indicated that rate hikes could be faster and higher than previously forecast, including an anticipated fourth rate hike for 2018.
Treasury yields rose, but the yield curve temporarily flattened to its lowest level since September, 2007 after the Fed announcement, signaling fears of future economic weakness or a policy mistake by too aggressive Fed tightening. Simply put, that means short end yields, like the 2-year, ... (full story)

On the fundamental side USD has the best hand for 2018. Either the US economy will turn to out to be too strong (excess demand and higher short rates esp relative to others) or it will be a Goldilocks scenario (relatively cute) so expect a strong rally in USD for remainder of 2018. Not so cute for 2019. Trump opponents like me will have to bear the veneer of solidity this year. Fed is painting itself into a corner.